Aunt Connie's Cookies is a brand that is synonymous with delicious lemon crÃÂ¨me and real mint cookies throughout the east and mid-west. Maria Villanueva, the grandniece of Connie Rochoa, is now the CEO of the family-owned business. She has appointed Team C as the COO. Team C will make decisions with a view to maximize the firm's contribution margin and operating profits.

The bulk order should not be considered when the cookie production for both types of cookies exceeds production capacity. This would mean that the company is incapable of completing the order. Also, Aunt Cookies should not consider accepting a bulk order if the asking sales price per unit for the order is at a price that would produce results where the contribution margin is less than the fixed costs. Although the contribution margin may still be greater than zero, it will still produce a loss for the company. Therefore, it would not be worth it to the company to fulfill the order.

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13 pages188Jan/20064.8

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